What is the Late Payment Fee charged to Epcon Communities franchisees?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Late Payment Fee | Lesser of interest at 18% annual rate or maximum rate permissible under state law, for the period beginning on the day payment is due through the date payment in full is made to us, as well as our costs of collection, including reasonable attorney’s fees. | When payment is overdue. |
Source: Item 6 — OTHER FEES (FDD pages 16–22)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, if a franchisee's payment is overdue, they will be charged a late payment fee. This fee is the lesser of 18% per annum or the maximum rate permissible under state law. The interest is calculated from the original due date until the date the payment is made in full.
In addition to interest, Epcon Communities may also charge the franchisee for any costs of collection associated with the late payment. This includes reasonable attorney's fees incurred by Epcon Communities to recover the overdue amount.
This policy is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial stability and provide consistent support to all franchisees. Franchisees should ensure they understand the payment terms and due dates outlined in their Franchise Agreement to avoid incurring these additional charges.